(Bloomberg) — The value of stocks in Southeast Asia’s biggest economy outperformed its regional rival by the most on record in December against the backdrop of two different political climates.
Indonesia’s equities benchmark Jakarta Composite Index rose 0.7% to close at a record Tuesday. The rally widened the market-value gap over Thai stocks — the region’s second-largest economy — to as much as $258 billion last month, the most since at least 2003, according to data compiled by Bloomberg.
Indonesia has benefited from optimism that the nation’s central bank may be done with rate hikes and the government’s economic policies would be uninterrupted by new administration with an upcoming election. The value of Indonesian shares has jumped about 25% in the past year, while that of Thailand has fallen 12% after months of a political stalemate and disappointing economic growth.
Indonesian companies raised about $3.5 billion in initial public offerings in 2023, up 58% from a year earlier, according to a data compiled by Bloomberg. International investors also pumped a net $497 million into the country’s stocks in December, the most since April, the data showed.
–With assistance from Filipe Pacheco.
©2024 Bloomberg L.P.
